Chancellor George Osborne has vowed to cut corporation tax by 5% in a move to encourage businesses to invest in the UK following Brexit.

Osborne said he would slash the rate to below 15%, which is 5% lower than the current rate of 20%.

The Chancellor told the Financial Times that the cut was part of his plans to build a “super-competitive economy” with low tax rates.

He said it was important for Britain to “get on with it” to show investors that the country was still “open for business”.

The 5% reduction would give the UK the lowest corporation tax of any major economy.

A Treasury spokesperson confirmed Osborne’s plans but said they did not know when the cut would come into force.

Earlier this year, Osborne pledged to review current business rates and cut corporation tax to 17% by 2020.

Last week, Osborne insisted that the UK was in “a position of strength” following the UK’s vote to leave the EU.

Shadow chancellor John McDonnell told the BBC that the proposal was “counter-productive” and would not create the business investment that the UK needed.